STRONG activity among first-time buyers is matching the levels of mortgage borrowing by existing homeowners moving house - in a trend not seen for 20 years - according to banks and building societies.
Some 48,600 loans were handed out for homeowner house purchase in February, around half (24,200) of which went to first-time buyers, with the remaining 24,400 going to home-movers, the Council of Mortgage Lenders (CML) said.
The number of first-time buyer loans was up by 11% year-on-year, while house purchase lending to home movers was down by 5.8% year-on-year.
On average, first-time buyers need to put down a 16.2% deposit, the CML's figures show.
Paul Smee, director general of the CML, said: "Borrowers took out more loans to purchase a home in the first two months of 2017 than any year since 2007. This is down to strong first-time buyer activity which has consistently matched home-mover borrowing over the past six months, a trend not seen in the UK for 20 years."
There have been suggestions that first-time buyers have been given a window of opportunity by the fall in buy-to-let investors buying properties.
The CML's figures show buy-to-let lending for house purchase plummeted by 44.7% annually in February, with 5,700 loans advanced.
A stamp duty hike for buy-to-let investors was imposed on April 1 last year, and there were signs of investors rushing to buy properties early last year before the deadline.
Mr Smee said: "House purchase activity on the buy-to-let lending side remains weak."
He said this trend is expected to continue due to tax changes for buy-to-let investors and lenders tightening their affordability criteria.
Jeremy Leaf, a north London estate agent and former residential chairman of the Royal Institution of Chartered Surveyors, said: "This underlines what we are finding in our offices - that first-time buyers are taking advantage of a level playing field now that so many buy-to-let investors are choosing not to add to their portfolios but rather are staying put and even selling in some cases."
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